Trump orders framework for secondary tariffs on Iran's trade partners

​​​​​​​US President Donald Trump has formalized a policy threatening significant economic penalties against countries that engage in trade with Iran, signing an executive order that establishes a framework for imposing punitive tariffs. The order, which does not immediately levy tariffs but creates the legal authority to do so, was unveiled on Friday, coinciding with the opening of high-stakes nuclear negotiations between Washington and Tehran in Muscat, Oman.

Mechanism and scope of the tariff threat

The executive order authorizes the imposition of tariffs on goods imported into the United States from any country found to be purchasing Iranian goods or services, either directly or indirectly. While the text does not specify a fixed tariff rate, it gives a 25% duty as an illustrative "example." The order tasks the secretaries of state and commerce with identifying which foreign nations continue commercial dealings with Iran after the order's effective date of Saturday. The commerce secretary must inform the state secretary of any such findings, triggering a process for potential tariff implementation.

Timing and strategic context

President Trump first announced his intention to impose such "secondary sanctions" via tariffs in a social media post last month, as Iran was grappling with widespread domestic protests. By issuing the formal order on the same day as the nuclear talks, the administration signals a dual-track strategy of pursuing diplomacy while escalating maximum pressure. The move aims to financially isolate Iran by threatening its remaining international trade partners, compelling them to choose between access to the U.S. market and maintaining economic ties with Tehran.

Implications for allies and global trade

This policy represents a significant escalation of Washington's "maximum pressure" campaign, extending its reach beyond traditional financial sanctions to direct trade penalties on third countries. It poses a particular dilemma for nations like China, India, and Türkiye, which have maintained varying levels of trade with Iran. The threat underscores the Trump administration's willingness to leverage U.S. economic dominance as a tool of foreign policy, even at the risk of friction with allies and disruptions to global supply chains, all while delicate nuclear diplomacy is underway.